Issue 2 October 2017

Transcription

1 Issue 2 October 217

2 AT SAVE THE DATE 21 st African Securities Exchange Association Annual General Meeting & Flagship Conference Africa Mapping the Future 19 th - 21 st November 217 The Nile Ritz - Carlton Hotel Cairo, Egypt For more information please contact the organizers on; info@ ASEA AFRICAN SECURITIES EXCHANGES ASSOCIATION

3 ABOUT ASEA The African Securities Exchanges Association is the Premier Association of 27 Securities Exchanges in Africa, that have come together with the aim of developing Member Exchanges and providing a platform for networking. The Association was established in 1993, and works closely with Member Exchanges to unlock the potential of the African Capital Markets and the African economies in the following ways:- 1. Enhancing the visibility of ASEA members at the international level with a view to attract capital inflows to African Capital Markets 2. Providing an authoritative information portal on African public markets and provide aggregated statistics and information on African Exchanges 3. Being a powerful lobbying and advocacy voice for Member Exchanges 4. Promoting market development among Member Exchanges 5. Promoting Capacity Building and Training for Member Exchanges 6. Initiating Strategic Alliances on behalf of Member Exchanges ASEA seeks to position the African Capital Markets as key enablers of economic recovery in Africa by the year 225. ASEA MEMBERS FULL MEMBERS Bolsa de Valores de Cabo Verde Botswana Stock Exchange Bourse de Tunis BRVM Casablanca Stock Exchange Dar-es-Salaam Stock Exchange Douala Stock Exchange Egyptian Exchange FMDQ OTC Securities Exchange Ghana Stock Exchange Johannesburg Stock Exchange Khartoum Stock Exchange Libyan Stock Market Zimbabwe Stock Exchange Lusaka Stock Exchange Malawi Stock Exchange Mozambique Stock Exchange Namibian Stock Exchange Nairobi Securities Exchange NASD OTC Securities Exchange Rwanda Stock Exchange OBSERVER MEMBERS African Development Bank (AFDB) Society for Worldwide Interbank Financial Telecommunication (SWIFT) Seychelles Securities Exchange (Trop- X) Sierra Leone Stock Exchange Stock Exchange of Mauritius Swaziland Stock Exchange Uganda Securities Exchange Nigerian Stock Exchange ASSOCIATE MEMBERS South Asian Federation of Exchanges Chartered Institute for Securities and Investment Chartered Financial Analyst Institute

4 FMDQ OTC SECURITIES EXCHANGE NIGERIAN STOCK EXCHANGE DAR ES SALAAM STOCK EXCHANGE EGYPTIAN EXCHANGE Issue 2/September/217 4

5 WELCOME NOTE Greetings and welcome to the second edition of the African Exchanges Magazine this year! Bull markets are born on pessimism, grow on skepticism and mature on optimism, those were the words of Mr. John Templeton, the Founder and Former Chairman of Templeton Growth Funds Limited. These words have indeed been proven right so far in 217, by the recent rise of various Stock Markets around the world. In America, the Obama-Trump Bull Run saw the Standard & Poor's 5 (S&P 5) index soar up to 268% since the financial meltdown. The S&P 5 has garnered USD 2 trillion in value since the election of President Trump on November 216. This bullish spree rippled into Africa too, despite the sluggish economic growth of sub-saharan Africa in 216, whereby the continent closed at 1.5% in growth rate its lowest level in twenty years. However, most economies in the region seem to be restarting their growth engine and gunning for an upward trajectory with a projected average growth rate of 3.4% by the end of 217. This promising rise can be connected to a number of activities amongst Member Exchanges of ASEA. In this edition, you will read about awards won by Namibia Stock Exchange and the FMDQ OTC. FMDQ OTC scooped the 'Most Innovative in Financial Market award at the first Business Day Top 25 Most innovative companies and institutions in Nigeria 217 Awards. The Namibian Stock Exchange was awarded the Financial Services Organisation of the Year award in the Africa and Middle East category at the Corporate LiveWire Global Awards 217. On matters leadership, at the Egyptian Exchange (EGX), Mr. Mohamed Farid and Mr. Mohsen Adel joined the exchange as the Executive Chairman and Vice Chairman respectively of the EGX s Board of Directors on August 6, 217. On the cover story, you will read about the colourful 25th edition of the Stock Exchange of Mauritius Young Investors Award (SEMYIA) 217, held in Mauritius on August 16, 217. The objective of this event is to inculcate a savings and investment culture amongst the youth. Other Member Exchanges across the region are undertaking similar initiatives. You will also read about the fourth Nigerian Stock Exchange NSE Corporate Challenge e-race Cancer Run that took place on July 1, 217. There is also an interesting article on how the Nairobi Securities Exchange launched the first ever Mobile bond issuing platform M-Akiba.With this innovation, Kenya became the first country in the world to launch the much awaited retail government bond, on June 3, 217, paving the way for financial inclusion of all so as to achieve economic development. Moving on to Rwanda, this edition covers a story of the Rwanda Stock Exchange s Memorandum of Understanding with the Chartered Financial Analyst (CFA) Institute, in a bid to enhance capacity building and create awareness about the financial sector in Rwanda. As we approach the end of the calendar year, we look forward to the Annual ASEA Conference which will be hosted by EGX in Cairo, Egypt on November 2 21, 217. This year s Conference theme will be Africa Mapping the future. We hope to engage in fruitful dialogue that will promote the continent s role and significance in the global economic transformation. The Conference will be preceded by the ASEA Annual General Meeting on November 19, 217. Happy reading as we wish you a bullish remainder of 217 and see you in Cairo! 5 Issue 2/October/217

6 Q 1. For the ordinary African citizen, what is an OTC Exchange? A. An over-the-counter (OTC) Exchange is an one that provides an electronic trading platform for the OTC Markets, where trades are executed on a bilateral basis (i.e. among Dealing Members), without the guarantee of the OTC Exchange. Prior to the global financial crises in 27/8, an OTC Exchange was considered to provide less transparency and have fewer regulations than the traditional Exchange, however post-crises emerging trends have motivated new regulations that have contributed to blurring the lines between Exchanges and OTC markets, such as the provision of clearing house arrangements, straight-through-processing, and more stringent rules and regulations. FMDQ OTC Securities Exchange (FMDQ) was registered by the Securities and Exchange Commission (SEC), Nigeria, in 212, as an OTC securities exchange, with a primary focus on organising and deepening the markets within its purview (fixed income, currency and derivatives); and as a self-regulatory organisation responsible for regulating the activities of its Members in the markets under its governance, through effective collaboration with key financial market regulators. FMDQ s key services include listings & quotations, memberships, market connectivity, post-trade, data & information and market regulation services. Q 2. In 215, FMDQ OTC Securities Exchange launched its Product and Market Roll-out Plan which is set to come to fruition in 217. Tell us about your journey so far? A. From a product and market development perspective, FMDQ has sought to respond to the dire needs of the Nigerian financial markets through the introduction of innovative products and resuscitation of market segments, with the support of the relevant financial markets regulators and operators. Notable achievements include the following: 1. The introduction of the Commercial Paper (CP) Registration and Quotation Service (including the Commercial Paper Quotation Rules and Process) which has rejuvenated the CP market 2. Having identified the funding gap for corpo rates, between the money market debt securities (such as commercial papers) and the traditional medium- to long-term debt securities (such as bonds), FMDQ, through a series of intense deliberations with its stakeholders over a 2-year period, obtained the approval of the SEC, in October 216, for its Short-Term Bonds Registration Process and Listing Rules (STB Rules). The STB Rules outline the governance structure for STB issuances as well as the procedure for the registration of prospective STB issuances. A critical value-add is that FMDQ now serves as the OTC Exchange through which the primary due diligence for all STB issuances are conducted, thereby ensuring an expedited time to market 3. The launch of the Naira-settled OTC FX Futures market has remained pivotal in the Nigerian FX market as an innovative risk management product and continues to provide a feasible means for businesses and corporates to hedge their FX risk exposures 4. FMDQ seeks to provide a platform for the listing/quotation of products within the full spectrum of the debt capital market (DCM) Issue 2/October/217 6

7 Market Profile space, hence, the OTC Exchange developed the Sukuk Listing Rules to extend its Listings and Quotations Service to non-interest capital market products, with a specific focus on the listing of Sukuk instruments. This supports the Securities and Exchange Commission s objectives to promote diversity, depth, and financial inclusion in the Nigerian DCM 5. In line with its desire to, not just integrate the Nigerian financial markets, thereby improv ing the markets network effects, but to also promote market liquidity, FMDQ launched its Dealing Member (Specialists) (DMSs) category of membership, for non-bank finan cial institutions (NBFIs) to act as market makers in the FMDQ fixed income market. This unique initiative, where fixed income dealers of NBFIs can trade bonds, commer cial papers and treasury bills in the FMDQ market, was birthed from the identification of an innovative opportunity for the much-needed participation of NBFIs in the Nigerian fixed income market 6. FMDQ through its unique and robust market knowledge and information portal, e-mar kets, commenced providing a wide range of data and information, ranging from indexes, benchmarks to real-time pricing data Furthermore, in line with the critical focus of Product Diversification for 217, FMDQ seeks to introduce a full complement of derivatives products to enhance risk management, liquidity, depth and inclusion in the Nigerian financial markets. Q 3. The topic of climate finance and sustainability is currently popular in the Capital Markets, is it an area of interest to FMDQ? If so, what is being done? A. Indeed, this is a topic of interest to FMDQ. The OTC Exchange continues to leverage on collaborations with its key stakeholders to achieve its market development agenda. Consequently, the Debt Capital Markets Development Project, a market-wide initiative (project-managed by FMDQ), set up to promote the achievement of the overarching desire of fostering a highly liquid, deep, efficient and well-developed debt capital market, in order to boost growth and support the future development 7 aspirations of the Nigerian economy, has recently launched a new Sub-Committee (one of the five (5) Project transformation levers), the Sustainable Finance Sub-Committee. This Sub-Committee will focus on entrenching Sustainable Finance principles and concepts into the Nigerian capital market and help drive the nation s agenda as they relate to sustainable finance. Membership of this Sub-Committee includes local and international stakeholders drawn from relevant government agencies/ministries, regulators, development finance institutions, and the Nigerian financial market. Furthermore, an Investors/Issuers Roundtable Session, was recently organised by FMDQ, in collaboration with the Climate Bonds Initiative (CBI), focusing on contemporary issues affecting the successful development of sustainable finance-related bonds, such as green bonds principles, standards and benchmarks for the issuance of green finance notes, amongst others. Q 4. As a player and contributor to the Nigerian financial market, how do you guard yourself and your members from cyber-crime attacks? A. FMDQ recognises the threat of and implications of cyber-attacks and ensures that its extant IT infrastructure and security policy and processes are periodically evaluated. A Risk Mitigation Plan is also in place to prevent the occurrence and manage potential impacts of any cyber-attacks. Our proactive posture is complemented with adequate investments in implementation of security solutions and education of staff and Members. Q 5. Lastly, as one of ASEA s most recent members, are there any benefits that FMDQ has appreciated from the membership? A. FMDQ, following its admission as a Member Exchange of ASEA, has been fully able to leverage on the benefits afforded to all ASEA members. Some of these benefits include visibility through quarterly publication of FMDQ s news and statistics in ASEA s quarterly magazine, networking and capacity building opportunities through the Annual Conference and Capacity Building Seminar, knowledge sharing and policy development through participation in the Working Groups, amongst many other benefits. Issue 2/October/217

8 Cover Story Investor Education - SEM Young Investor Awards 217: Real investor experience, Real competition, Real investor learning The Stock Exchange of Mauritius (SEM) held the Awards Ceremony for the 25 th edition of the SEM Young Investor Award Competition (SEMYIA) 217 at the Octave Wiehé Auditorium, Réduit, on 16 th August 217. This Investor Education initiative is now a well-established annual national event, with this year s competition attracting 28 teams of five students each from 14 colleges across the country, representing 14 students. Bel Air SSS, Team B won the first prize of Rs 2, and the Challenge Trophy offered by the Stock Exchange of Mauritius. The second and third prizes of Rs 1, and Rs 5, went to Sodnac SSS, Team A and Team B respectively. The MCB Grouo, the National Mutual Fund and Aon Hewitt Ltd sponsored the three cash prizes respectively. Ebene SSS Girls, Team B won the challenge trophy for the Best Report, sponsored by the CFA Society Mauritius. This year, a keen interest by students was also noted since the very beginning of the competition, through their frequent interactions with the Stock Exchange, stockbrokers and asset managers to obtain information and stock market advice, as well as through the active management of their portfolios. Broadly speaking, the aims of the competition are to inculcate an investment culture among college students by giving them a hands-on exposure to a key component of the financial services sector, namely the securities industry; to give participants an opportunity to understand the operational aspects of the Exchange; and trigger the interests of college students in the financial sector activities, so that they hopefully pursue higher studies and professional careers in this growing sector of the Mauritian economy. Initiated in 1993, the SEM Young Investor Award Competition stood this year at its 25 th edition. Throughout the years, this annual event generated a growing interest from high school lower 6 students across the country, and the number of participants and schools considerably increased over the last 25 years. This Investor Education initiative is now a well-established annual national event. SEMYIA Awards Ceremony 217 at the Octave Wiehé Auditorium Issue2/October/217 8

9 NEWS: MAURITIUS The competition started on 3 rd April 217 and ended on 3 th June 217, spreading over a period of 3 months.this year s competition has attracted 28 teams of five students each from a record number of 14 colleges across the country, representing 14 students. A technical briefing was initially held at Octavié, on 15 th March 217 for all participating students to explain them the steps of competition, key aspects of portfolio management and stock market technicalities they need to master, as well as investment plan and report writing. This technical briefing was followed by a briefing given by Anglo Mauritius Stockbrokers Ltd for all participating team leaders. Each team was required to invest an investment fund of Rs 2, of token money in a portfolio consisting of the shares of 5 companies listed on the Official Market of the Stock Exchange of Mauritius. Each team was allowed to make up to ten investment swaps at any time during the period of the competition. Portfolios were updated on a daily basis. On the 3 th of June, each portfolio was valued and the rate of return on each portfolio was calculated against the value of the initial portfolio. Besides, each team was required to present a Report (in 2 parts: an Investment Plan and an Investment Report) at the end of the competition. The Report carried 3% of the marks, the remaining 7% having been allotted to the profits realised on the portfolio. During the 3-month period of this year s competition, starting from 3 rd April 217 to 3 th June 217, the all-share index SEMDEX increased by 9.66% and the Total Return Index SEMTRI increased by 1.5% In this regard, it is particularly noteworthy that a commendable number of teams were able to outperform the main stock market indices during this period. In fact, as many as 93 teams outperformed the all-share index SEMDEX and 68 teams have outperformed the Total Return Index SEMTRI over the 3-month period. The best team realised an outstanding portfolio performance of 22.15% over the 3-month period. Address of Mr Sunil Benimadhu, Chief Executive of the Stock Exchange of Mauritius In his welcome address to participating students and the broader audience, Mr. Sunil Benimadhu said: There are a few pertinent objectives underpinning the SEM Young Investor Award. One of them is SEM s conviction in the importance of extracurricular activities for high-school students, with a view to providing students with opportunities for personal development and growth outside the classroom and complementing students academic endeavours. This is why, this national share market game is of direct relevance to you as many of you will be thinking of joining university soon. For admission in top universities, these institutions indeed look first at your academic grades and performance. But, you must be aware that next, they are also interested in students extracurricular activities in other words, how you spend your time outside classes. In his speech, Hon. Sudhir Sesungkur, Minister of Financial Services and Good Governance, said: In today s world of increasingly complex financial decisions, financial literacy is a vital skill for everyone. It is important that learning about money management begins at an early age, so that every school leaver has the necessary basic financial skills to assist them in managing their future.sem is praised for this yearly national Investor Education Initiative for the young generation and it is interesting to see that an astounding number of 98 teams were able to outperform SEMDEX and the best team realised a stunning portfolio performance of 22.15% over a 3-month period. 9 Issue 2/October/217

10 NEWS: MAURITIUS Address of Hon. Sudhir Sesungkur, Minister of Financial Services and Good Governance The winning team of the SEMYIA Edition 217, namely Bel Air SSS Team B received the Challenge Trophy offered by the SEM. The winning team won the cash prize of Rs 2, offered by the MCB Group, MCB shares to the value of Rs 25, MCB luxury bags, an individual MCB shield as well as a one-week traineeship within the MCB Group represented at the Awards Ceremony by Mr. Gilbert Gnany, Chief Strategy Officer and Director of the MCB Group. Mr. Gilbert Gnany, Chief Strategy Officer and Director of MCB Group, with Bel Air SSS Team B: Bheekhun Bibi Huzeifah, Jokhoo Varsha Devi, Gooljar Aisha, Raojee Seeteexsha, Goolvaden Bibi Shaheen Issue 2/October/217 1

11 NEWS: MAURITIUS The runners-up of SEMYIA Edition 217, namely Sodnac SSS, Team A, received a shield offered by the SEM. The runners-up also won the cash prize of Rs 1, offered by NMF, NMF General Fund units to the value of Rs 5 as well as a one-day visit within the NMF Savings and Investments Department, as part of the package offered by NMF, represented, at the Awards Ceremony by Mr. Bertrand Casteres, Director of National Mutual Fund and CEO of the Mauritius Union Group. Hon.Sudhir Sesungkur, Minister of Financial Services and Good Governance, Harvesh Seegolam, CEO of FSC, Sunil Benimadhu, SEM CEO, Gilbert Gnany, Chief Strategy Officer of MCB Group and Prof. Donald Ah-Chuen, Vice Chairman of the SEM with 217 SEMYIA winning team. SEM Milestones Mr.Jerome Katz, Head of Financial Services of MUA Group with Sodnac SSS Team A: Seetaram Riddhi Devi, Baijnath Meghna, Cunniapen Amy Nathania, Gopaul Chikirsha,Takoordyal Hansita The third prize comprising a cash-prize of of Rs 5, and corporate gifts has been offered by Aon Hewitt Ltd represented by Mr. Imrith Ramtohul, Senior Investment Consultant of Aon Hewitt Ltd and went to Sodnac SSS,Team B. Ebene SSS Girls, Team B won a shield offered by the SEM as well as the challenge trophy for the Best Report, offered by CFA Society Mauritius, represented by its Chairman Nousher Sait. The Stock Exchange of Mauritius congratulates the winners in this year s competition and all participants, as well as extends its thanks to the sponsors of this competition namely, the MCB, the NMF, Aon Hewitt, and CFA Society Mauritius, for having played an instrumental role in supporting this annual Investor Education initiative to develop an investment culture in Mauritius and the SEM is very grateful to them. 25 SEM is recognized as a member of the World Federation of Exchanges the attainment of Full Membership status of the (WFE) in 25 constitutes an important milestone that has enabled the SEM to join the league of stock exchanges that are compliant with the stringent standards and market principles established by the WFE SEM is considered an Approved Stock Exchange by the Cayman Islands Monetary Authority (CIMA), by virtue of its membership to the purposes of CIMA s Mutual Funds Law, Banks and Trust Companies Law, Insurance Law, Companies Management Law and Securities Investment Business Law SEM is designated as a "Recognised Stock Exchange" by the United Kingdom s Her Majesty s Revenue And Customs under section 15 (1) (b) Income Tax Act 27, with effect from 31 January Issue 2/October/217

12 By Tom Minney Do African commodities exchanges achieve the desired results? The Ethiopian Commodity Exchange (ECX) was set up with backing from the Ethiopian Government. In a very readable 212 paper by the founder and first CEO Eleni Gabre-Madhin outlining the origins, aims and implementation of ECX, she mentions the Government backing in replacing laws so that trade in commodities including coffee (which makes up 35% of Ethiopia s exports from 2-214), has to go through the exchange, and the determined resistance from those who had previously dominated the export trade. Ethiopian Commodity Exchange Issue 2/October/217 12

13 She mentions funding: Five initial donors the US Agency for International Development, the Canadian International Development Agency, the World Bank, the International Fund for Agricultural Development, and the United Nations Development Programme committed US$9.2 million in just two weeks. This figure grew over the years as commitments increased. The World Food Programme and the European Union joined the list, and donor funding eventually reached US$29 million. Bill & Melinda Gates Foundation is mentioned in later articles as a donor. Since the early days of ECX, payment has been guaranteed the day after purchase and there is a proud record of zero defaults (as on nearly all regulated exchanges worldwide). This is a big change on earlier problems faced by farmers and others with many buyers reneging on contracts. In addition Eleni s aimed that the exchange should transform agricultural marketing countrywide, and she oversaw the construction of a host of modern regional warehouses and transport. On the negative side, a news report in January 217 in local The Reporter newspaper mentions ECX users reporting problems including increasing contraband and quality compromises by bribing the cuppers who grade the commodities. A study by the International Food Policy Research Institute (IFPRI) in May 217 suggests that with regard to coffee, the ECX had not brought enough transformation: Before the establishment of the ECX, Ethiopia had a fairly well-functioning coffee auction floor in Addis Ababa Second, the strict regulations that the ECX has introduced into the country s coffee market have resulted in higher transaction costs. These costs could potentially cancel out the benefits of some of the ECX s innovations, such as electronic payment systems. Finally, the Ethiopian coffee sector continues to face some inherent challenges that are not affected by the ECX namely, weak infrastructure and low productivity. In February 217 The Economist published an article about African commodity exchanges dubbing them high tech, low impact. It noted that ECX had not moved beyond spot trading since 28 and futures contracts to help farmers manage price fluctuations are far behind the 5-year target. The Economist verdict: The Government made it viable by mandating that almost all trade in coffee and some other commodities go through the exchange. This might not be possible elsewhere. A monopoly imposed by fiat makes it more like a state marketing board than an exchange, says Thomas Jayne, an economist at Michigan State University. Another model might be the Agricultural Commodity Exchange for Africa in Malawi, which was set up privately in 26 at the request of an association of smallholder farmers. But its volumes remain low. And its concentration on staple foods such as maize and soya leaves it vulnerable to the sort of government interventions that can sink exchanges. Trading in staples tends to be politically sensitive in times of food scarcity. Setting up national exchanges may be the wrong approach. The Johannesburg Stock Exchange plans to introduce a regional contract for Zambian white maize later this year. For lucrative export crops like coffee, well-established offshore exchanges may make more sense than starting from scratch at home. Better a functioning exchange somewhere else than a disappointing one on the doorstep. 13 Issue 2/October/217

14 BOTSWANA STOCK EXCHANGE The Botswana Stock Exchange (BSE) hosted a Media Training Workshop on the April 25th, 217 at Cresta Lodge starting at 9hrs. The overall aim of the Media Training Workshop is to educate and assist media houses on stock market reporting in a bid to refine and enhance information dissemination to the public. The workshop also availed an opportunity for different media houses to relay some of their concerns and challenges when reporting on stock market related issues and to engage in discussion with the participants on this interactive platform. The Media Training Workshop was facilitated by Ms. Nozipho Mbanjwa from Akwande Communications in South Africa. Nozipho is an internationally acclaimed conference moderator that currently hosts a financial markets show on CNBC Africa. The aforementioned show is currently broadcasted in 48 African countries and discusses issues of the political economy, development finance, youth development and other social-economic and finance related matters. She is an alumni of the University of London (Masters in International Studies), Stellenbosch Business School ( Masters in Development Finance cum laude), University of Pretoria (Hons: International Relations), and has completed shorter courses at the Gordon Institute of Business Science (Leadership) and the University of the Witwatersrand (Marketing). Present at this event was all the leading media houses and several other strategic partners within Capital Markets. BSE Hosts Open Days in the villages of Kasane and Ghanzi The Botswana Stock Exchange (BSE) hosted an Open Day in Kasane on the 11th May, 217 and another one in Ghanzi on the 15th June, 217 under the theme, Your Partner in Wealth Creation. The overall aim of the BSE Open Day is to increase outreach in the various Districts to sensitize and educate the public about the stock market and the importance of investing. This initiative will further serve as a platform to guide participants on the process of investing in BSE listed securities and assist in addressing some of the concerns many Batswana may have with regard to the stock market. The BSE leverages on this initiative to educate and inform local business owners about the prospects of listing on an Exchange to facilitate growth, the listing process and the listings requirements. The open day also provides a platform for business owners to draw lessons and knowledge on how a listing can assist in expanding their business operations to other markets outside of Botswana. Present at this event was the cream of Botswana s corporate society representing private companies, government departments, parastatals, and several other strategic partners within Capital Markets. Issue 2/October/217 14

15 BSE Hosts the Health, Fitness and Investment Drive Botswana Stock Exchange (BSE) hosted the annual BSE Health, Fitness and Investment Drive on August 5 th, 217, at the BNYC Sports Ground in Fairgrounds under the theme, Stay Health, Get Wealthy starting at 7hrs. The overall aim of the BSE Health, Fitness and Investment Drive is to educate Batswana and the general public at large on the benefits of a healthy mind, body and financial status. As a strategic initiative, the CSI Drive will also strive to highlight the importance of investing in the stock market as an avenue for wealth creation, with the long-term view of insuring one s future financial status. This will be achieved in a fun and interactive environment, with a feature of health and fitness activities facilitated by professional trainers and medical staff. BSE Hosts the Senior Secondary Schools Competition The Botswana Stock Exchange (BSE) hosted the 5th Annual Senior Secondary Schools Competition on issues of Finance and Investment for form four (4) students on August 19 th, 217 in Gaborone at the University of Botswana Library Auditorium. The BSE conducts and facilitates initiatives that strive to promote awareness about investment opportunities in the BSE in order to improve retail investor participation in the stock market. This entails identifying or developing new market segments for the current BSE offerings. As such, the BSE established the Annual Senior Secondary Schools Competition in 213 in a bid to sensitize and educate the student community about capital markets, with the strategic aim to increase financial literacy and to promote a culture of investing from a young age. In addition, this on-going initiative will assist in providing a platform for students to gain an in-depth insight into the importance of future financial planning and to harness knowledge on how the stock market can be utilized as an investment avenue. Subsequent to participation in the competition, the winners of this year s competition were availed the opportunity to kickstart their investment portfolios as they will be afforded share vouchers amounting to P3,. in total. This will be distributed between all the first (1 st ), second (2 nd ) and third (3 rd ) placed schools. 15 CEO of the BSE, Thapelo Tsheole with Zumba Instructor Tiyapo Graves Honourable Member of Parliament Bogolo Kenewendo officially opening the competition. Issue 2/October/217

16 Chairman of the BSE Main Committee, Lieutenant General Tebogo Masire giving Chairman s remarks. 217 Winners, Lobatse Senior Secondary School As a follow up to the successful Botswana Bond Market Conference co-hosted with the BSE on 6 October 216, the Botswana Bond Market Association (BBMA) conducted the Bond Market Roundtable Discussions on 2 June 217. BBMA Conducts the Bond Market Roundtable Discussions For this purpose, the discussion were focused on; 1) The cost of raising capital in the market and the ways to make the bond market cost competitive; The objective of the roundtable discussions was for domestic bond market participants to have focused deliberations on specific bond market issues that were highlighted at the Conference in 216. The participants mapped out and committed to progressive resolutions to these issues. Notably, the common standpoint shared by the delegates was the need to address the inefficiencies brought about by having fragmented trading and settlement platforms in one small economy. (2) The revised BSE debt trading fee structure; (3) Broadening and attracting issuances from government, state-owned entities and international financial institutions; (4) The need for centralization of trading, clearing and settlement of the Botswana bond market. FTSE ASEA PAN AFRICA INDEX SERIES Choosing the right index partner has never been more important. FTSE Russell indexes are trusted by investors in every corner of the world to measure and benchmark markets across asset classes, styles or strategies. ASEA provides a forum for mutual communication, exchange of information, co-operation and technical assistance among its members, to facilitate the process of financial integration within the region for the effective mobilization of capital and accelerate economic development of Africa. Issue 2/October/217 16

17 NEWS: TANZANIA THE DAR-ES-SALAAM STOCK EXCHANGE (PLC) A Recent Success After the successful self-listing exercise of the Dar-es-Salaam Stock Exchange PLC, DSE PLC has managed to established a CSD Company in line with IOSCO Principles that requires separation of the post trading (custody, clearing and settlement of securities) from securities trading activities. THE DSE SIC had a total of 12, participants which is an increase of 3 Times Compared to the 216 Challenge The newly CSD Company, currently wholly owned by the DSE PLC, will operationalize soon after issued license by the Regulator. Dse Plc Continued With Investor Education & Public Awareness Initiatives The DSE Scholar Investment Challenge ( DSE SIC )217 Ended on 3th June 217. The DSE SIC designed by DSE with objectives of fostering a culture of saving and invesment and also educating the younger generation in univerisities and secondary school about the Stock Exchange About 12 Tanzanian youth from higher learning institutions nationwide registered into the Dar es- Salaam Stock Exchange's (DSE) Scholar Investment Challenge to get a practical view of the world of capital market investment, one of the main economic growth engines. DSE concluded the Competition with 2 finalists in to the quiz portion which culminated with 5 Winners being awarded 5 million TZS to begin their investment portofolios. DSE Begins its Transformation Journey to attain a Frontier Market Status. THe Dar-es-salaam Stock Exchange PLC held a capital markets product development work shop on 2nd of August 217. Which discussed the launching of the next generation of capital markets in Tanzania. DSE Chief Executive Officer Moremi Marwa said by utilizing this product Development project, the DSE PLC will be able achieve Frontier Market status by 22. The DSE PLC, together with the Capital Markets Securities Authority (CMSA) and other capital markets stakeholders, deliberated on the legal and regulatory reforms and market infrastructure required for the envisaged new product and services that aim at deepening and broadening financial services in the capital market space. 17 Issue 2/October/217

18 NEWS: TANZANIA Dar Es Salaam Stock Exchange Joins Un Sustainable Stock Exchanges Initiative DAR-ES-SALAM Stock Exchange has joined United Nation s Sustainable Stock Exchange initiative that promotes sustainability among investors and companies. Signing a voluntary commitment to endorse long-term sustainable investment, and to improve environmental, social and corporate governance (ESG) disclosure and performance of listed companies, the DSE now joins its peers such as Johannesburg Stock Exchange, The Egyptian Exchange, Nigeria Stock Exchange, Nairobi Securities Exchange, Rwanda Stock Exchange and other SSE Partner Exchangesworldwide committed to this objective. conducted in a manner that embraces transparency, environmental protection, social and corporate governance as well as sustainability of both current and future generations,. DSE held a Forum for Sustainability Reporting and Compliance which explained to listed companies that they would need to adhere to a Environmental, social and governance Audit (ESG) an assessment of a business through the three central factors in measuring the sustainability and ethical impact of an investment in a company or business. Following this initiative DSE has incorporated the ESG theme in to its DSE Members Award which will be held on the 29 th of September 217. DSE Chief Executive Officer Moremi Marwa said We have a keen intent to encourage and motivate our members and other stakeholders to ensure businesses and investments activities are Dar Es Salaam Stock Exchange Team Issue 2/October/217 18

19 NEWS: EGYPT EGYPTIAN EXCHANGE Councilor/ Adly Mansour Heads EGC Foundation For Sustainability Mehlab, Abu Zaid, El Meslemany, Zuelfaqar Members in The Boards of Trustee Within the framework of the community initiative that was initiated by the former president, counselor / Adly Mahmoud Mansour, to adopt some developmental projects in the field of health and support of Abu Al-Rish Hospital for children. The management of the stock market works towards community service and sustainable development and its support initiatives in various fields. The Egyptian Exchange executed the initiative of the former president and its board of directors approved the establishment of the Egyptian Exchange for Sustainable Development and its support of LE5 million. Counselor Adly Mahmoud Mansour chaired the first founding meeting of the Egyptian Exchange for Sustainable Development at the Egyptian Exchange Smart Village premise. Minister of Investment and International Affairs Participated In EGX Celebration of Orphans Day Her Excellency Dr. Sahar Nasr, Minister of Investment and International Affairs, participated in the celebration of the Orphan s Day in the presence of, Chairman of (EGX), a number of children and companies listed on the stock exchange, and opened the trading bell. Her Excellency Dr. Sahar Nasr, Minister of Investment and International Affairs, participated in the celebration of the Orphan s Day in the presence of, Chairman of (EGX), a number of children and companies listed on the stock exchange, and opened the trading bell. Her Excellency Dr. Sahar Nasr expressed her pleasure to participate in EGX celebration of Orphan s Day, and support for orphans, praising the social responsibility of the private sector and EGX. She encouraged to continue the support and not to limit it to one day in the year. She stressed on the importance of the non-banking financial sector, which supports economic growth and the private sector. The Minister stressed on the Egyptian Exchange to undertake many efforts aimed at spreading the culture of community work and sustainable development between the restricted companies and the various parties in the market as well as its employees as part of its strategy and in line with the United Nations Stock Exchange Initiative for Sustainable Development. EGX chairman said that the Egyptian Exchange's campaign to collect donations for orphans in Egypt has succeeded this year in collecting 1 times what was collected last year. The stock exchange collected donations amounting to LE 1.5 million for orphans, compared to about LE 15, last year. 19 Issue 2/October/217

20 The Egyptian Exchange Witnessed the Third IPO in Year 217 In a new step reflecting the success of EGX management efforts in attracting new companies, EGX trading platform has welcomed its third visitor this year, namely Raya Contact Centers; it is the highest value IPO compared to the previous two IPOs that were executed during the four months since the beginning of the year. Raya Contact Centers commenced trading today at the main market under the symbol: RACC where the opening price was (LE 16.7) In line with this, EGX Chairman, stated that the high momentum of the IPOs during the first four months of this year reflects the efforts of EGX management in this regard. He pointed out that the value of the IPOs executed during the earlier period of this year, which amounted to LE 1.5 billion represents about 65% of the total value of the executed IPOs during year 216. EGX concluded during the past year five IPOs of a value about LE 2.3 billion. Moreover, EGX Chairman expects enduring the pace of the IPOs during the current year, pointing out that currently there are 7 companies working on completing the required documents in a step towards the commencement of their IPOs and trading. EGX Chairman Met CITI Group Delegation & the Chairman of The US Company - Infor EGX Chairman, received a delegation from Infor, an American company specialized in technology and specialized applications. The company plans to launch its operations in Egypt with expected investments of about USD 1 billion. Charles Phillips, the company s Chairman and a number of senior executives attended the meeting which reviewed the company's expected investment plans during the coming period in Egypt. EGX Chairman also met with a delegation of Citibank International in the presence of a group of senior officials in the region. During the meeting, the bank officials expressed their satisfaction with the recent reforms and decisions, especially the ones of the foreign exchange floating and easing restrictions on transfers' foreign investors abroad. "The decisions and reforms adopted by the Egyptian government recently reflected positively on the decisions of our clients to invest in Egypt. They also re-positioned Egypt on the global investment map" said Reto Faber, Head of Registry and Settlement for Europe, Middle East and Africa. Issue 2/October/217 NEWS: EGYPT For his side, EGX Chairman pointed out that these meetings are part of EGX ongoing efforts to reach out to the business community, at the regional and international levels. They discuss the positive developments and the radical reforms Egypt recently witnessed, especially with regard to the government's efforts to improve the investment climate. The meeting also reviewed the latest updates of EGX listing and trading rules and procedures. Chairman of the Egyptian Exchange Participated In the Arab Week of Sustainability Chairman of the Egyptian Exchange participated in the first session of the Arab Sustainability Week, which is held in Cairo from May 14-17, and organized by the Arab League in cooperation with the United Nations and the World Bank. The Egyptian Exchange Chairman participated in the first session entitled "General and Global Concepts of Sustainability", the session was moderated by World Bank's Deputy Director, Dr. Mahmoud Mohieldin, Mr. Muhannad Hadi, World Food Program (WFP) Regional Director and Mr. Guangzhe CHEN, Senior Director for the Water Global Practice (GP). During the session, he presented some figures indicating the global trend towards sustainability comparing it with its levels in Arab countries. This trend is indicated through the witnessed activity in the debt markets, where, there was a huge increase in investments for sustainable development. For example, the value of issuance of green bonds in 216 exceeded US$ 42 billion, which was 15 times higher than their levels recorded in 212. Unfortunately, despite this global interest and activity, the region's share of this kind of bond issuance is almost zero. The EGX Chairman also addressed the role of capital markets in applying sustainability, due to their ability to reach most of the private sector companies. He indicated as well the importance of stock exchanges role in providing sustainable financial instruments. During his speech, The EGX Chairman reviewed the efforts of the Egyptian Stock Exchange in the field of sustainability, explaining the organization's contribution in formulating the international initiative to improve the efforts of the stock exchanges in sustainability, progressing under the auspices of the United Nations Secretariat which seeks the achievement of sustainability goals. The President of the Egyptian Exchange explained that the strategy of the Egyptian Stock Exchange in this framework is based on three main axes: Transforming the Egyptian Exchange into a sustainable institution. The initiative of directing the Private Sector towards sustainability. Launching the Egyptian Exchange Sustainability Foundation, to consolidate the efforts of all parties indulged in sustainability activities in the Egyptian capital market. 2

21 NEWS: EGYPT The First Egyptian Public Institution in the Region That Issues Annual Sustainability Report Appointing Mr. Mohamed Farid as EGX Chairman In an important step of EGX management towards achieving its strategy of becoming a sustainable institution and leading the listed companies and the various market participants for accomplishing the objectives of sustainable development, EGX has issued the first Annual Sustainability Report at the level of the Egyptian public institutions. In this context, EGX Chairman said that issuance of the report aims to monitor the most important initiatives EGX has accomplished in the field of sustainable development during the past year (216). It has witnessed the accession of the exchange to the Global Compact, as well as signing of "Marrakech Commitments for the Development of Green Capital Markets in Africa". EGX has also won the position of Vice President of the Sustainability Committee of the World Federation of Exchanges (WFE). He pointed out that EGX is one of the most effective institutions on the regional and global levels in the field of sustainability of the financial markets. This would give incentive to other public institutions to take serious steps in this regard because of its positive impact on the business environment and the investment climate. Worth mentioning that EGX has issued in October last year "The Guidance Manual Of ESG of Listed Companies" as the first guide of its kind regionally. It aims at helping the listed companies to apply the principles of sustainability in their activities and in the issuance of their reports; EGX held training for the management of these companies to apply the principles which reflects positively on their performance and enhances the transparency and efficiency of the market as a whole. For more details on the Annual Sustainability Report 216, please refer to the below link the website at: ba-4243-a489-2e3eb2bcecb/sustainability-report-216_en.aspx link: ID= And "The Guidance Manual Of ESG of Listed Companies" please refer to the below Mr. Mohamed Farid - EGX Chairman The Egyptian Exchange (EGX) is pleased to announce that Mr. Mohamed Farid and Mr. Mohsen Adel have joined our team as EGX Chairman and Vice Chairman, for a term of 4 years. Mr. Mohamed Farid, the new Chairman, served as the Vice Chairman of the Egyptian Exchange for the years He is also a Board member of the Insurance Holding Company, the Egyptian Investor Protection Fund, and formerly the CEO of an Economic Forecasting Consulting firm in Egypt. Mr. Farid was selected as an external advisor for venture capital and financial leasing activities at the World Bank in Egypt for the period from 213 to 216. Formerly, Mr. Farid served as Senior Financial Economist and Head of the Capital Market Unit at the Ministry of Investment, where he was responsible for following up with the Egyptian Exchange development plans, most importantly the SMEs market (Nilex), ETFs and bonds market. He served as an Economist at the Ministry of Economy and Foreign Trade. In addition, Mr. Farid was a part-time lecturer at the American University in Cairo and the Arab Academy for Science, Technology and Maritime Transport. During his tenure as EGX Vice Chairman, Mr. Farid was responsible for developing a detailed plan for the establishment of derivatives market, in addition to the preparation of the legislative rules governing this market. Mr. Farid holds a BSc in Commerce and Economics from Helwan University. He also holds an MBA from the Arab Academy for Science, Technology and Maritime Transport and an MSc in Economics, Finance 21 Issue 2/October/217

22 NEWS: EGYPT and Investment from York University, UK and an MSc in Financial Mathematics from CASS Business School, UK, and Venture Capital Certificate from UC Berkeley, USA. On the other hand, Mr. Mohsen Adel EGX newly appointed Vice Chairman, has an extensive experience in the market. He is a Financial Expert at the Egyptian Center for Economic Studies and a member of the Egyptian Investment Management Association (EIMA). He also serves as a lecturer at the ESLSCA Business School and several academic institutions. Formerly, Mr. Adel was a Board member of the Egyptian Exchange (EGX) and the Egyptian Financial Services Institute for the period from 213 till 217. He was also a member of EFSA Capital Market Advisory Committee. In addition, Mr. Adel was the former Vice President of the Egyptian Association for Finance and Investment Studies. He also served as the Managing Director of Pioneers Funds. Mr. Mohsen Adel holds a postgraduate diploma in Stock Market Analysis from Cairo University, he also holds a Bachelor's degree in Foreign Trade from the Faculty of Commerce and Business Administration, Helwan University. Issue 2/October/217 22

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26 NEWS: KENYA NAIROBI SECURITIES EXCHANGE Kisumu Listing Dinner The NSE held the third edition of its listing forums in Kisumu on April 27, 217. The event which was attended by key industry players, appraised various business persons and industrialists on the region on the opportunities available in the capital markets. The event was an exciting opportunity to brainstorm on the available options of raising capital at the Exchange. Participants were also enlightened on the benefits of listing their businesses. Mr. Geoffrey Odundo CEO-NSE addressing participants Mr. Heril Bangera- Giving an overview of Flame Tree Group s Journey since listing at the bourse. Issue 2/October/217 26

27 NEWS: KENYA EABL Medium Term Note Programme Commences Trading at The Exchange The East African Breweries Limited listed its final series of its Medium Term Note on the Fixed Income Securities Investment Segment of the Nairobi Securities Exchange on May 8 th, 217. The note recorded a 141 per cent subscription netting Kes. 8.4 billion against the Kes. 6 Billion on offer. The note is part of EABL s capital raising programme that began in 215 targeting to raise KES 11 Billion in two tranches. The offer generated a total of 17.4 Billion, which will go towards optimizing operations and restructuring the brewer s balance sheet. A key highlight of the 217 AGM was the approval by shareholders of the establishment of an employee share ownership plan (ESOP) unit trust dubbed the NSE Unit Trust. The shareholders also approved a dividend payment of Ksh..27 per ordinary shares and the Change of the company s name from Nairobi Securities Exchange Ltd to Nairobi Securities Exchange PLC. The listing of the Note on the NSE will provide an avenue for investors who were unable to participate during the offer.the note will bear interest at a fixed annual rate of at least % until maturity on March 28 th, 222. Shareholders follow proceedings during the NSE 63 rd AGM Official Launch of M-akiba (L-R) Mr. Andrew Cowan, Mr. Charles Muchene and Mr. Geoffrey Odundo ring the bell during the listing of EABL medium Term Bond. 217 Annual General Meeting The exchange held its 63 rd Annual General Meeting on Wednesday, May 31, 217 at the KICC Amphitheatre. The AGM was attended by over 7 shareholders. The shareholders approved the re-election of Mr. Samuel Kimani and Dr. Winnie Nyamute as Independent Non-Executive Directors of the company while Mr. Bob Karina was re-elected as a Director Representing Trading Participants. Kenya became the first country in the world to launch its much awaited retail government bond on 3 th June 217 at the Exchange. The launch of the bond which will be traded exclusively through mobile handsets was officiated by Mr. Henry Rotich, Cabinet Secretary, National Treasury. The Government sought to raise Kshs 1 billion with a green shoe of Kshs 3.85 billion at a minimum investment of Kshs.3, and interest rate of 1% tax exempt. The offer will run for three weeks from 3th June to 21 st July 217. Speaking during the launch, Mr. Sam Kimani, Chairman NSE said Mobile technology presents a great opportunity to reconstitute the investor profile of our capital markets. As the Exchange, we continue to broaden our product offering through continuous innovations such as these. To participate, simply dial *889# anytime, anywhere on any mobile devise.. The launch marks an important milestone of keeping the promise of financial inclusion for all Kenyans. 27 Issue 2/October/217

28 NEWS: KENYA The 3 rd Annual ICEA Lion Asset Management Conference Stakeholders cutting the cake to celebrate the launch of the M-Akiba retail bond. NSE Team Building The NSE participated in the 3 rd Annual ICEA Lion Asset Management (ILAM) Conference which was held at the Enashipai Resort & Spa in Naivasha.The event targeted trustees of pension funds and provident schemes bringing together about 1 delegates. Speaking during the event, the Nairobi Securities Exchange Chief Executive, Mr. Geoffrey Odundo highlighted the benefits of investing at the NSE while encouraging investors to consider the stock market as a viable investment option. The ILAM Investment Conference is held annually to address different emerging issues in the financial and capital market sector. The NSE staff retreat took place on 23 rd July to 26 th 216 at Jacaranda Hotel, Mombasa. The retreat aimed at building team cohesion in the interest of fostering better and open communication and teamwork between employees. The retreat went a long way in improving professional relations, understanding and co-operation, as staff aligned themselves to meeting the strategic objectives of the company. NSE Staff pause for a photo during the recently concluded team building 2 nd African Risk Management Convention The Nairobi Securities Exchange (NSE) partnered with Institute of Risk Management (IRM) recently, to hold the 2 nd African Risk Management Convention at Whitesands Hotel in Mombasa. The three day inter-industry convention brought together more than 3 experts, professionals and thought leaders from over 3 countries around the world. The convention provided a platform for participants to share ideas, learn from peers while improving existing value adding risk management methodologies. The convention which was themed Using Risk Management to Drive Performance Excellence brought together CEOs, CFOs, Risk Managers, Risk professionals among others. NSE was represented by its Chief Executive Mr. Geoffrey Odundo. Issue 2/October/217 28

29 NEWS: NIGERIA FMDQ OTC SECURITIES EXCHANGE FMDQ Wins Business Day s Most Innovative in Financial Markets Services Award In recognition of the contributions made by FMDQ OTC Securities Exchange (FMDQ or the OTC Exchange) to the development of the Nigerian financial markets, the OTC Exchange won the 'Most Innovative in Financial Markets' Award at the first Business Day Top 25 Most Innovative Companies & Institutions in Nigeria Awards 217. The Nigerian financial markets have undergone significant changes in recent years, and FMDQ, having risen to its commitment to transform the markets, by, among others, bringing them to par with the global markets, has continued to lead the pace through timely service, product and market development innovations. From its visionary stride in successfully facilitating the Naira-settled OTC FX Futures Market, launching the short-term bonds product initiative, pioneering a Nigerian securities exchange learning institution, the FMDQ Academy; to championing the market-wide Nigerian Debt Capital Markets Development Project, FMDQ has indeed and in no small measure, created value geared towards the ultimate growth and development of the Nigerian economy. As an innovation-driven OTC Securities Exchange, availing the markets unique opportunities and aligning its operations and activities with international standards, this Award validates FMDQ s efforts in transforming the Nigerian financial markets. Mr. Bola Onadele. Koko (5th from the left), Managing Director/CEO, FMDQ, accompanied by some FMDQ Management & staff, receives the Award for Most Innovative in Financial Markets Services, on behalf of FMDQ, from Mr. Emmanuel Ukeje, Special Adviser to the Governor of the Central Bank of Nigeria on Financial Markets, during the BuinessDay Top 25 Most Innovative Companies & Institutions in Nigeria Awards Issue 2/October/217

30 NEWS: NIGERIA Leadership Changes at the Helm of FMDQ The Board of Directors of FMDQ, announced the retirement of the second Chairman of the Board of Directors, Dr. (Mrs.) Sarah O. Alade, OON, from the Company, effective April 28, 217. The outgoing Chairman, Dr. Alade, was appointed to the Board of FMDQ in July 214, following the retirement of its inaugural Chairman, Mr. Aigboje Aig-Imoukhuede, CON. Representing the Central Bank of Nigeria (CBN) on the Board of FMDQ, Dr. Alade was the Deputy Governor, Economic Policy Directorate, CBN, until her retirement. Dr. Alade, who has been pivotal to the transformation of the Nigerian financial markets over the years, led the OTC Exchange astutely for almost three (3) years and was instrumental to the successes achieved by FMDQ during the period. In addition to Dr. Alade, three (3) other Directors, having served in varying capacities also retired from the Board. Dr. Alade has been replaced by Dr. Okwu Joseph Nnanna, the CBN Deputy Governor currently overseeing the Economic Policy Directorate. Dr. Nnanna joins the Board of FMDQ with a wealth of experience, having previously served as the Alternate Executive Director representing Nigeria and twenty-one (21) other Sub-Sahara African countries on the Board of the International Monetary Fund, amongst numerous other relevant financial markets appointments. He is currently the Chairman of the Board of Directors of Africa Finance Corporation. The Board of FMDQ also announced the shareholders ratification of the appointment of Mr. Kennedy Uzoka, Group Managing Director/CEO of United Bank of Africa PLC, and Mr. Dapo Akisanya, Managing Director/CEO, AXA Mansard Pensions Limited, whose appointments to the FMDQ Board as Directors took effect on August 1, 216 and January 1, 217 respectively. This is in addition to the retirement of Mr. Yinka Sanni (Director and Chair, Board Governance and Human Resources Committee) from FMDQ. Mr. Sanni is Chief Executive Officer (CEO) of Stanbic IBTC Holdings PLC and represented the Financial Markets Sub-Committee of the Bankers Committee on the Board of FMDQ, in his capacity as the erstwhile CEO of Stanbic IBTC Bank PLC. As Nigeria s foremost OTC Exchange, FMDQ, under the leadership of Dr. Nnanna, remains committed to transforming the Nigerian financial markets in line with its GOLD (Global competitiveness, Operational excellence, Liquidity and Diversity) Agenda. L-R: Mr. Bola Onadele. Koko, Managing Director/CEO, FMDQ; Dr. Okwu Joseph Nnanna, incoming Chairman, FMDQ Board of Directors; Dr. Sarah Alade, OON, outgoing Chairman, FMDQ Board of Director and Mr. Jibril Aku, Vice Chairman, FMDQ Board of Directors during the Company s 5th Annual General Meeting FMDQ Launches Process for Onboarding of FX Corporate Clients on its Website Following the CBN s drive to restore confidence in the Nigerian foreign exchange (FX) market and consequently boost the liquidity via additional inflows into the market, the apex bank had issued a directive to all Authorised Dealers mandating that they execute all FX trades with their corporate clients only through the FMDQ-advised Trading & Surveillance System. FMDQ, having the same transparency and growth objectives for the Nigerian FX market, to facilitate this process, has launched the corporate institutions onboarding process to ensure the seamless integration of both local and international corporate institutions onto the Thomson Reuters FX Trading and Auction Systems. The System, which is the FMDQ-Thomson Reuters FX Trading System (TRFXT) has been deployed to, among other things, enhance system-based dealing for FX (trading) and provide the needed credibility and transparency for all FX trades. In addition, this System provides surveillance functionality, lending itself as an indispensable tool for the financial market regulator, as well as FMDQ, to effectively and efficiently monitor and organise the Nigerian FX market. Details of the FX Onboarding process for local and international corporate institutions, along with the associated application forms are available on FMDQ s website at Kindly contact the FMDQ Business Origination Group at bog@fmdqotc.com for more information. Issue 2/October/217 3

31 NEWS: NIGERIA Naira-Settled OTC FX Futures Market: One Year in Review, as 12 th Contract Settles on FMDQ Following its launch in June 216, the Naira-settled OTC FX Futures market has remained pivotal in the Nigerian FX market as an innovative risk management product and continues to provide a feasible means for businesses and corporates to hedge their FX risk exposures. Having consistently provided the means for these businesses and corporate institutions to enhance their business planning, among other key benefits, with about $7.bn worth of contracts so far executed between the CBN and Authorised Dealers (Banks), on behalf of their clients and themselves, on FMDQ, the resilience in maintaining this market and ensuring its viability and sustainability have remained of paramount importance to the CBN, other market participants and FMDQ. The CBN has remained consistent with its support of the operations of the OTC FX Futures market by continuing to offer OTC FX Futures contracts for the past year, replacing matured contracts and actively refreshing its quotes on the contracts on a monthly basis. Whilst the OTC Exchange, along with the FMDQ-designated clearing agent for the OTC FX Futures contracts, the Nigeria Inter-Bank Settlement System PLC, have facilitated the seamless and timely settlement of all matured OTC FX Futures contracts, as well as the general daily operations of the market to ensure its smooth and efficient running of the market. The first year of the OTC FX Futures market has also seen the development and launch of the new fixing for the market, by FMDQ, the NAFEX Nigerian Autonomous FX Fixing which is the FMDQ reference rate for foreign exchange activities in the recently introduced FX window by the CBN, the Investors & Exporters FX Window. In keeping with the progress of this development, the 12th OTC FX Futures contract NGUS JUN , which marked the 1-year launch of the Naira-settled OTC FX Futures market, matured and settled on Wednesday, June 21, 217. The matured contract, which settled at the NAFEX rate of $368.83, had, for the first time in the 1-year operations of the Naira-settled OTC FX Futures market, contract holders transact at rates below the settlement rate at the maturity of the contract, resulting in a net payout to the CBN. Specifically, holders of the NGUS JUN contract that entered into the trade at the CBN-offered monthly rates from October 216 (at $27.5) through to May 217 (at $385.6) had to make this net payout to the CBN. Leadership Changes at the Helm of FMDQ This lays credence to the efficiency of the OTC FX Futures market, adding credibility of the market and the framework and operational guidelines as developed and documented by FMDQ in support of the running of the market. It further serves to instill even greater confidence to the foreign and Nigerian portfolio investors and other market participants, on the transparent nature of the activities in this market, as well as demonstrating the effectiveness in and indeed importance of risk management for the Nigerian FX market. Therefore, even as the apex bank, Authorised Dealers and FMDQ, among others, display their determination to maintain FX market stability and create an environment conducive for investors, exporters, traders and other end-users, the Nigerian FX market continues to undergo reforms as well as the introduction of key market development initiatives, thereby experiencing a gradual move towards regaining its vibrancy. All market stakeholders must play their respective parts with diligence to support the potential of these market development initiatives and reforms to ensure success. FMDQ Holds Inaugural Induction Programme for its Members' Authorised Representatives With a strategic focus to ensure all the Authorised Representatives of Members of FMDQ are appropriately sensitised of the market development, regulatory and governance mandates of FMDQ in the OTC markets, a series of Induction Programmes have been launched for all the OTC Exchange s Members Authorised Representatives (MARs). The ultimate objectives of these Induction Programmes are to highlight the importance of regulation and governance to the development of the Nigerian financial markets, and to foster a culture of compliance and professionalism amongst participants in the market. MARs are employees or such other persons as may be authorised by an FMDQ Member to perform activities on its behalf on the OTC Exchange. They include, but are not limited to, treasurers, dealers, compliance officers, risk officers, treasury operations staff, treasury sales staff and control & audit staff. Essentially, the Induction Programme provides an avenue to formally introduce the MARs to FMDQ s markets, systems, processes, standards, regulation, etc., and offer a holistic view of FMDQ s dual functions as a market organiser and self-regulatory organisation, as well as create a clear understanding of FMDQ s value proposition, membership benefits, market development and governance initiatives, inter alia. 31 Issue 2/October/217

32 NEWS: NIGERIA To this end, the inaugural Induction Programme, which commenced with the first set of Authorised Representatives of the FMDQ Dealing Member (Banks) (DMBs) i.e. CBN-licenced banks, was held on Wednesday, July 26, 217. Subsequent sessions shall be conducted for all the Authorised Representatives of the DMBs, Dealing Member (Specialists), Associate and Registration Members over time. FMDQ Listings & Quotations FMDQ Lists Pioneer Infrastructure Debt Fund in Nigeria and Sub-Saharan Africa Globally, infrastructure contributes to economic development by increasing productivity and providing amenities, which enhance quality of life and business activities. The DCM provide a key avenue through which infrastructural growth can be sustained to promote economic development, and Nigeria is beginning to take a cue from model markets like the United States, United Kingdom and Malaysia, which have used the strength of their DCM to power growth, fund and set up viable infrastructure projects to support development for the good of their citizenry. The Chapel Hill Denham Nigeria Infrastructure Debt Fund is the latest in these laudable initiatives that are paving the way for the development of Nigeria s infrastructure sectors via the Nigerian DCM. Thus, having successfully obtained the Securities and Exchange Commission s approval, Chapel Hill Denham Management Limited registered and established the Nigeria Infrastructure Debt Fund (NDIF) N2,,,. Issuance Programme, and subsequently issued the first series under this Programme Series I 49,45, Units of 11.2 each. The NIDF (or the Fund) the Chapel Hill Denham Nigeria Infrastructure Debt Fund Series NI49,45, Units of 11.2 each, under the N2,,,. Issuance Programme following a very swift and efficient application process, was granted approval on July 14, 217, by the FMDQ Board Listings, Markets and Technology Committee, to be listed on FMDQ s platform. The Fund, which is the first-ever listed infrastructure debt fund in Nigeria (and Sub-Saharan Africa), is a close-ended fund and has its investment focus on the traditional infrastructure sectors, primarily transport, power, renewable energy, utilities, energy infrastructure (e.g. storage terminals), logistics and other public-private-partnership type investments, thereby supporting infrastructural development in Nigeria. The Fund aims to enable investors access infrastructure as an asset class, while providing the benefit of predictable returns available from long-dated infrastructure debt investments. To commemorate this remarkable and historic feat, a prestigious Listing Ceremony was held at the offices of the OTC Exchange on Monday, July 17, 217. In recognition of the profound significance of this achievement, FMDQ pulled out all the stops during this Ceremony, to not only express this recognition and commend Chapel Hill Denham s efforts in leveraging the Nigerian DCM in an attempt to close the nation s infrastructure gap, but also to increase awareness, towards garnering additional nationwide support for this creditable initiative. From the dedication of a live one-hour Channels Television Business Morning Show focused on the NIDF and the listing of the Fund, to the live airing of the actual hour-long Listing Ceremony, FMDQ, in partnership with key stakeholders the DCM community, financial services regulators and media are total advocates of using the Nigerian DCM to finance the development of the nation. The listing of the NIDF on FMDQ serves to further validate the recent recognition of FMDQ as the most innovative securities exchange in the Nigerian financial markets by BusinessDay at its 217 Top 25 Most Innovative Companies & Institutions in Nigeria Awards. FMDQ will remain steadfast in its commitment towards the development of the Nigerian DCM, and the Nigerian economy at large, and provide the requisite platform to power the growth in the Nigerian DCM, offering the highest credible markets for capital transfers. L-R: Mr. Bola Onadele. Koko, Managing Director/CEO, FMDQ OTC Securities Exchange (FMDQ); Mrs. Olukemi Awodein, Managing Director, Chapel Hill Advisory Partners Limited; Mr. Olawale Edun, Chairman, Chapel Hill Denham Group; Mrs. Ononuju Irukwu, Managing Director, Chapel Hill Denham Management Limited; Mr. Bolaji Balogun, CEO, Chapel Hill Denham Group & Chief Investment Officer, Nigeria Infrastructure Debt Fund and Mr. Philip Southwell, Chairman, Investment Committee, Nigeria Infrastructure Debt Fund during the listing of the pioneer Chapel Hill Denham Nigeria Infrastructure Debt Fund on FMDQ OTC Securities Exchange Issue2/October/217 32

33 NEWS: NIGERIA FMDQ shall continue to strive to ensure the markets under its purview emerge as globally competitive, operationally excellent, liquid and diverse. Through the continued support for institutional growth, the OTC Exchange shall invariably contribute its quota towards the nation s economic recovery. Stanbic IBTC Holding Registers N2.bn Commercial Paper Programme on FMDQ Given the increasingly competitive market environment, corporates and commercial entities have continued to seek innovative approaches towards executing their financing strategies. CPs, continue to present and serve as an alternative source of complementing working capital requirements, among others, for these businesses. Bola, Onadele, Koko - MD, CEO, FMDQ Sterling Bank and FSDH Quote N16.18bn Worth of Commercial Papers on FMDQ FMDQ has admitted for quotation, the Sterling Bank PLC Tranche B N2.8bn Series 2 and N15.mm Series 3 Commercial Paper (CP) Notes under its N1.bn, as well as the FSDH Merchant Bank Limited N2.1bn Series 3 and N12.4bn Series 4 CP Notes under its N3.bn CP Programme, a combined total of N16.18bn worth of CPs, on the platform in the month of June 217. The successful admittance of these issues follows the due approvals obtained from the FMDQ Board Listings, Markets and Technology Committee, and attests to the efficient and uniquely tailored Listings and Quotations service offered by FMDQ. From the continuous provision of invaluable information to global visibility, improved secondary market liquidity, efficient price formation and unique transparency, the activities and value-adding services of the OTC Exchange continue to be experienced by businesses, corporate and government entities with debt securities listed/quoted on FMDQ. The FMDQ Board Listings, Markets and Technology Committee, approved the registration of the Stanbic IBTC Holdings PLC N2.bn CP Programme (the Stanbic IBTC Holdings CP Programme) on its platform in readiness for such time(s) Stanbic IBTC Holdings PLC chooses to go to the market to raise finance (i.e. issue CPs) from the market within the boundaries of the N2.bn CP Programme. With a streamlined and efficient registration process, FMDQ avails a commendable quotations service which offers, among others, credibility for quoted CPs and global visibility via the Quotations Page on the FMDQ website and the FMDQ-Bloomberg Trading & Surveillance System (E-Bond). Also, FMDQ publishes the Quoted CPs Status Report which provides up-to-date information and the status of all CPs quoted on FMDQ s platform. By playing host to several CP quotations, FMDQ provides the much-needed visibility, confidence and protection to issuers, investors, market regulators, among others, whose direct and indirect activities play an important role in developing the nation s economy. Having joined other top-rated institutions that have their CP programmes registered on the OTC Exchange, the timely and efficient registration of the Stanbic IBTC Holdings CP Programme is a validation of FMDQ s mandate to be operationally excellent, towards the transformation of the Nigerian debt capital markets. As part of FMDQ s commitment to organise, govern and enforce credibility and transparency in the debt capital markets space, the OTC Exchange has, through its innovative practices and the concerted efforts of its stakeholders, positively influenced the competitiveness of the Nigerian financial markets. 33 Issue 2/October/217

34 NEWS: NIGERIA FMDQ Approves Registration of The Rand Merchant Bank N8.bn Commercial Paper Programme FMDQ maintains its support for the development of the Nigerian debt capital markets by steadfastly availing its efficient platform for the registration, listing, quotation and trading of debt securities. Accordingly, the OTC Exchange has welcomed another corporate commercial paper programme registration, the Rand Merchant Bank Nigeria Limited N8.bn Commercial Paper Programme (the Rand Merchant Bank CP Programme), to its platform. This CP Programme registration strategically positions Rand Merchant Bank to raise short-term finance from the debt market easily and quickly at a time in the future it determines suitable, through CP issues, within the CP Programme limit. In addition to the commendable and considerably efficient registration process, the quotation, on FMDQ, of the future CP issues from the registered Rand Merchant Bank CP Programme, will provide stakeholders with continuous provision of invaluable information as part of the OTC Exchange s commitment to organise, govern and enforce transparency in the fixed income market space. Thus, serving to further boost confidence in the possibilities of the Nigerian financial market. In line with its strategic objectives to support institutional growth and stimulate the continuous development of the economy at large, FMDQ has shown its steadfastness in realising these objectives through the promotion of product innovation and the championing of key market development initiatives, in order to ensure that opportunities abound for the markets under its purview. Issue 2/October/217 34

35 NEWS: NAMIBIA THE NAMIBIAN STOCK EXCHANGE Namibian Stock Exchange Clinches award at Livewire Global Event The Namibian Stock Exchange (NSX) walked away with the Financial Services Organisation of the Year award in the Africa and Middle East category at the Corporate LiveWire Global Awards 217, as announced earlier this week. The Corporate LiveWire Global Awards celebrate the achievements of the most outstanding individuals, companies and organisations in the business community over the last 12 months. Rising business trends in 217 including the rise of crowdfunding and the importance of content marketing and SEO have been highlighted in the awards guide and have played a substantial part in business growth around the world. Speaking to the Economist, NSX CEO, Tiaan Bazuin said his firm is very pleased with the recognition as the award is from a legal publication and largely based on the work the NSX did drafting and launching the NamCode. This is the corporate governance code launched in 214. With the widespread implementation of the NamCode and the recent launch of King IV in South Africa we are already receiving comments on the way forward for the Namibian Corporate Governance landscape, Bazuin added. Each individual and company had been set under great scrutiny by the judging team setting its sights firmly on the most client-focused and dedicated teams and individuals. The judging panel for the Global awards included Maxim Behar (Founder of M3 Communication Inc), Emma Jane Packe (Managing Director at the Supper Club), Urs Haeusler (DealMarket) and Osmaan Mahmood (Founder and CEO of Fenice Media Ltd), as well as the in-house team at Corporate LiveWire. 35 Issue 2/October/217

36 NEWS: JOHANNERSBURGH Issue 2/October/217 36

37 NIGERIA NEWS NIGERIAN STOCK EXCHANGE Hundreds of Participants Brave the Cold and Rain to erace Cancer at the 4 th NSE Corporate Challenge More than 85 participants braved the rain to support the fight against cancer at the 4 th edition of the Nigerian Stock Exchange (NSE) Corporate Challenge on Saturday, July 1, 217 at the Onikan Stadium, Lagos. The NSE Corporate Challenge is an annual, highly competitive and fun-filled 5-kilometre walk, jog and run competition designed to raise awareness and funds for the purchase of 37 Mobile Cancer Centers (MCCs), valued at $613, each. Speaking at the event, the Chief Executive Officer, NSE, Mr. Oscar N. Onyema, OON, said, It s amazing and emotional to see a lot of people turn out in the pouring rain to save lives. Cancer doesn t care about the weather, and neither do we. This year s event attracted over 2 partner companies who are all in massive support for the cause to tackle the cancer scourge in Nigeria. Onyema lauded the listed companies, non-listed companies, organizations, notable Nigerians and celebrities for their continuous support for the NSE Corporate Challenge since inception. We remained focus in one of our CSR efforts of mobilizing funds for the purchase of Mobile Cancer Centers in the country. Through this initiative, we want to provide access for early detection and treatment of cancers so that people can live to their full potentials. With your support, we believe we can save lives. The Ondo State first lady and founder of Breast Cancer Association of Nigeria (BRECAN), Mrs. Betty Anyanwu-Akeredolu, commended the NSE for galvanizing efforts to raise awareness and mobilize funds for the purchase of Mobile Cancer screening centers, across the 36 states in the country. She called for increased investments through a public-private sector partnership that will improve the screening process for cancer in Nigeria, considering the huge costs involved. She used the occasion to call on the Federal Government to effect policies that will attract private capital investments into the healthcare sector, to tackle diseases like cancer. 37 Issue 2/October/217

38 NIGERIA NEWS The Acting Head, Corporate Services Division, Ms. Pai Gamde, stated that the inconvenience of the rain cannot be compared to the pain of cancer. We are indescribably grateful and awestruck by the love and support shown by all who came to participate: our walkers, teams, sponsors, donors, volunteers, everyone who made this day possible. This year, we worked in close partnership with various sponsors, partners and volunteers. Our sponsors include, Dangote Cement PLC, Diamond Bank PLC, Eterna PLC, FBN Holdings, FCMB, Fidelity Bank PLC, Lafarge Africa PLC, Nestoil Limited, Nigerian Breweries PLC, Stanbic IBTC Holdings, Unilever PLC, Union Bank PLC and Wapic Insurance PLC. In his opening remarks, Oscar N. Onyema, OON, CEO, NSE noted that the African REITs market is presently valued at US$29 billion and is available in four (4) countries (Ghana, Nigeria, South Africa and Kenya). There are only 32 REITs in Africa with South Africa being the largest REIT market having 27 REITs and Nigeria second with three REITs listed. In 215, an estimated $265 million worth of transactions were concluded in Kenya, Nigeria and Ghana, a big improvement to the $65 million seen in all three markets during 212. This indicates an increasing market as a larger number of investors are beginning to take increased interest and participation in the Real Estate Investment sector. Our partners include, X3m Music, Nuli Lounge, Aquadana, Bodyline, Medview Airline, Emergency rescue, Businessday, AIT, TVC, Channels TV, Liberty TV, Liberty Radio, FRCN, Raypower, Radio Continental, Nigerian Info, Classic FM, Proshare and The Sun Newspapers. Anokue Uzochukwu from Cutix Plc emerged the overall winner of this edition of the NSE Corporate Challenge, winning a return ticket to London, courtesy of Medview Airline plc, a tablet and Gym membership from Bodyline. Austin Ani from Stanbic IBTC and Igiriogun John Bosco from Cutix Plc came second and third respectively winning a smartphone and gym membership each. Okorie Chisom Favour from Dangote Group Plc emerge the fastest female wining a return ticket to London, courtesy of Medview Airline plc, a smartphone and Gym membership from Bodyline. Graeme Bride from Lafarge came first in the senior citizen category, wining a smartphone and Gym membership. This edition of the NSE Corporate Challenge may have gone, but the fight against this dreaded disease continues. The NSE still welcomes contributions from corporate organizations and individuals who want to identify with the cause and help to accelerate the vision of procuring mobile cancer screening units to prevent avoidable deaths by making early detection possible for millions of people. NSE Hosts Maiden REITs Conference Wednesday, May 24 th, 217 In line with its strategic initiative to promote and create enabling environment for sustainable development of Real Estate Investment Trust (REITs) in Nigeria and sub-saharan Africa, The Nigerian Stock Exchange (NSE) hosted the maiden edition of its REIT Conference at the NSE Event Centre, Lagos on Tuesday May 23, 217. The Conference themed, Real Estate Investment Trust in Sub-Sahara Africa: The Role of the Capital Market, brought together key decision-makers, policy-makers, government officials, private sector players, property developers, asset managers, dealing members, investors and thought leaders to dimension the current state of the Real Estate sector and the opportunities inherent in REITs. Onyema further stated that Whilst the Nigerian market may not be as developed as other emerging markets such as Mexico, South Africa and Singapore, this asset class has definitely come to stay. Today we have about N4 billion in REITs market cap listed on the NSE and a total of N96 billion in the Construction/ Real Estate sector of our equity market. To create a more transparent, liquid and accessible market structure in line with global best practices for REITs, the Exchange recently started the process of implementing some changes in terms of reporting and valuation of REITs and other collective investment schemes listed on the NSE, Onyema remarked. Delivering his keynote address, the Honourable Minister of Power, Works and Housing, Federal Republic of Nigeria, Babatunde Raji Fashola, SAN who was represented by Ayo Gbeleyi, Managing Partner of GA Capital Limited, remarked that It is difficult, if not impossible, for Government to provide all Housing solutions given the diverse demands. The truth, which we must accept, is that 1% home ownership is an ideal, but the reality is that, best practices in places like the UK, US, Canada and Singapore are stories of a mixture of ownership and rental arrangements. Issue 2/October/217 38

39 NIGERIA NEWS On the sources of funding for housing projects by the Ministry, the Minister stated that In the medium term, we intend to raise more capital outside direct Government Treasury, working with the Federal Ministry of Finance, through Infrastructure Bonds, REITS and other forms of real estate financing instruments, leveraging as most appropriate the platform of the Nigerian Stock Exchange. He added that other funding sources such as pension funds, private equity funds, and the National Housing Fund managed by the Federal Mortgage Bank to finance development and also acquisition will be under consideration for the new capital issues. The first Vice President of the National Council of NSE, Mr. Abimbola Ogunbanjo, noted in his keynote address that the Nigerian REITs market is largely underdeveloped due to lack of clarity on diverse regulatory issues which are required to stimulate greater market confidence, transparency and foreign capital inflows. The major challenges facing the REITs industry in Nigeria include restrictive legislation, poor knowledge and understanding of the industry in addition to prolonged bottlenecks created by the Land Use Act of Nigeria s Land Use Act is embedded in the Constitution of our country. Thus, any attempt to rectify its inadequacies requires a constitutional amendment which of itself is a major challenge. Ogunbanjo therefore called for the establishment of a separate and dedicated Lands registry in each viable State of the Federation, a (REITS registry of sorts) within the existing legal framework to specifically handle all REIT related transactions. The 217 NSE REITs Conference featured three presentations and panel discussions on the Critical Elements for a Successful REIT s Market; Regulatory, Tax and Role of Capital Market in Developing REITs in Nigeria and Sub-Sahara Africa; and Developing sustainable capital flows for financing real estate assets moderated by Adeniyi Adeleye, Head, Real Estate Finance, West Africa, Standard Bank/Executive Director Stanbic IBTC Capital; Taiwo Oyedele, Partner, PwC West Africa Tax Leader; and Chris Godman, Executive Managing Director, Equity Capital Markets, Standard Bank International. The 217 REITs Conference which is sponsored by Stanbic IBTC Holdings Plc, FSDH Asset Management Limited, PricewaterhouseCoopers (PWC), United Property Development Company (UPDC) Plc, Rand Merchant Bank (RMB) Nigeria Limited, Udo Udoma & Belo-Osagie and Mixta Nigeria. 39 Issue 2/October/217

40 RWANDA NEWS RWANDA STOCK EXCHANGE RSE moves to Sharpen Skills of Stock Market Players He said the institute will also involve investor education and public awareness initiatives to ensure players understand the fundamentals of financial markets, basic investing principles and investor rights, among others As part of the deal, the CFA Society East Africa will sensitise RSE members on the programme, provide research services and share market data on the Rwandan capital markets. Rwabukumba noted that the qualification will give market players the requisite skills to make sound investment decisions while maintaining utmost professionalism. The local stock market has moved to improve the capacity of financial market stakeholders to enhance efficiency and create awareness about the sector. Under a deal signed between the Rwanda Stock Exchange and CFA Society East Africa on Wednesday, sector players and the general public will be trained in different areas to improve their skills and understanding of financial markets by CFA Institute. The Chartered Financial Analyst (CFA) programme is a professional credential offered internationally by the American-based CFA Institute to investment and financial professionals around the world. According to Pierre Célestin Rwabukumba, the chief executive officer of Rwanda Stock Exchange, the partnership seeks to foster the development of the Rwandan capital markets. Rwabukumba added that the agreement includes collaboration on capacity building initiatives for capital market players in areas, like governance and risk management in the financial sector, with an aim of improving professional excellence, ensuring accountability besides creating a pool of professionals to give the public investment advice. For those intending to enroll for the programme, the RSE chief advised them to consider the move as an investment into their business. Paul H. Smith, the president and chief executive of CFA Institute, said the agreement is part of the framework they have with the African Security Exchanges Association (ASEA). ASEA brings together all stock markets across Africa, including the Rwanda Stock Exchange. Smith said the institute supports stock exchanges through provision of scholarships to financial markets staff to encourage them to study the CFA course. This is part of the broader initiatives geared at continued professional education and skills development for sector players. So, this is a commitment to collaborate on the development of the local capital market, said Smith. In the East African Community, CFA Institute has about 1, candidates including Rwandans. Smith lauded the support given by different institutions like the Ministry of Finance, the central bank and the capital market body, saying there is a sense of commitment toward developing Rwanda as a financial hub in the East African region. Trainees Speak Out Zephanie Niyonkuru, a CFA Level I candidate, said the course improves competency of learners, giving them the necessary skills to ably advise clients on financial and investment matters. The CFA programme ensures academic and professional growth due to its rich curriculum that involves practical case studies. Besides its global respect and recognition, the course exposes candidates to different fields that significantly increase their investment analysis competencies, Niyonkuru explained. Issue 2/October/217 4

41 STATISTICS 41 Issue 2/September/217

42 FMDQ OTC SECURITIES TURNOVER ( 'mm) Quarter 1 Quarter 2 July January February March Total April May June Total July Total Foreign Exchange 421, ,474 1,4,734 2,189,854 1,8,352 1,477,434 1,624,83 4,11,616 1,478,675 1,478,675 7,779,145 Foreign Exchange Derivatives 1,194,43 1,237,483 2,82,741 4,514,654 1,429, ,695 1,12,25 3,416,96 1,61,477 1,61,477 8,992,227 Treasury Bills 5,26,173 6,34,148 6,668,966 18,269,287 3,716,13 3,867,63 5,457,13 13,4,269 5,37,157 5,37,157 36,346,713 FGN Bonds 1,258,26 1,94,298 1,85,751 3,438,31 632, ,22 785,385 1,915,62 523, ,489 5,876,861 Other Bonds* 29 1,62-1, ,631 Eurobonds** 8,812 13,631 21,28 43,651 1,257 1,249 5,19 7,697 7,444 7,444 58,791 Repurchase Agreements/Buy-Backs 2,659,845 2,558,731 2,487,279 7,75,855 1,895,42 2,618,65 3,515,448 8,28,933 3,28,519 3,28,519 19,15,37 Unsecured Placements/Takings 39,63 131,58 115, , , , 129,17 385, , , ,29 Money Market Derivatives 63 5,355 2,835 8,82 3,15 2,43 5,19 1,77 1,495 1,495 21,85 Commercial Papers ,843,427 12,145,781 13,468,68 36,457,888 8,797,817 9,493,137 12,624,458 3,915,412 11,535,669 11,535,669 78,98,969 USD equivalent ('mm) 35,17 39,17 42, ,93 27,82 3,299 4,885 99,4 37,193 37, ,99 USD/NGN rate No. of Business Days Average Daily Turnover 542,171 67, ,747 56, , ,54 631, ,99 549, , ,2 USD equivalent ('mm) 1,755 1,955 1,78 1,84 1,546 1,443 2,44 1,684 1,771 1,771 1,75 YTD NUMBER OF TRANSACTIONS Quarter 1 Quarter 2 July January February March Total April May June Total July Total Foreign Exchange 14,686 19,94 48,834 83,46 31,493 45,742 4, ,41 33,591 33, ,461 Foreign Exchange Derivatives 919 2,119 4,27 7,65 3,18 3,298 4,678 1,994 4,172 4,172 22,231 Treasury Bills 18,82 21,189 23,22 62,293 13,214 13,93 2,655 47,799 18,73 18,73 128,822 FGN Bonds 3,86 3,264 3,89 1,879 2,466 1,998 2,214 6,678 1,741 1,741 19,298 Other Bonds* Eurobonds** Repurchase Agreements/Buy-Backs 1,97 1,27 1,122 3, ,2 1,579 3,367 1,476 1,476 8,89 Unsecured Placements/Takings ,315 Money Market Derivatives Commercial Papers Total 38,851 47,85 81,96 167,752 51,125 66,166 69, ,86 59,923 59, ,481 YTD Note YTD - Year To date mm - million *Other Bonds include Agency, Sub-national, Corporate & Supranational Bonds Note: Figures may be subject to change due to potential adjustments from Dealing Members Source: FMDQ Data Portal July 31, 217; Figures reported by Dealing Members on a week-ending basis Issue 2/September/217 42

43 43 Issue 2/September/217 Apr-17 June-17 May-17 17,977, ,422,1.4 2,341, , ,243, , ,46,131 11,921 1,343,71 5, , ,793, ,452, ,436,361 58,492 1,8,15 8,297, , ,719, ,174, ,269,97 28,384 12,341,523 9, ,199, ,59,142, ,5,271,

44 Jul-17 Aug-17 Sept-17 4,591, , ,354, , ,737,76 56,56 2,636,85 44,8 54,511, ,597, ,845, , ,117,457 95,211, ,9, 5,726 26,741, ,884, , , ,39,666 94,311,542 7,75, 4, ,23,992, ,214,463, ,84,773, Domestic Companies Index Domestic Companies Index Domestic Companies Index % % % Issue 2/September/217 44

45 45 Issue 2/September/217 Apr-17 1,197,698, ,43,37, ,87, ,519, ,936,585,511. 3,897,56,154. 1,715, ,813, , , Jun-17 May-17 1,821 35,955,63, EGX-3 EGX , , ,19,913, ,94,662, ,188, ,924, ,548, ,737,911,631. 4,661,177,39. 3,613, ,121, , , , ,6,796,58.2 1,487,41, ,185, ,317, ,375,458,955. 7,122,55,786. 1,69, ,262, , , ,76. 37,437,74, EGX-3 13,

46 46 Issue 2/October/217 Jul-17 1,92,496, ,357, ,278, ,86, ,423,827,686. 6,366,248,326. 1,998, ,581, , , Aug-17 2,868 39,515,477, EGX 3 EGX , , ,479, ,521, ,694, ,263,88.7 4,854,53,727. 4,764,545,98. 1,196, ,789,11. 48, , ,54 39,995,95,

47 Apr-17 May-17 June-17 27,472,867, ,821,847, ,367,555, ,452,395, ,427, , ,824,5.4 89,757, , ,71 53, ,175,158,134, ,89,96, ,139,26, ,598, ,489, , ,85, ,679, ,796, ,637, ,49, , , , ,947 1,53,77,774 93,899 1,461,781, , ,267,245 17,782,29,83, ,25,6,268, NSE ALL-SHARE INDEX NSE ALL-SHARE INDEX NSE ALL-SHARE INDEX % % % % % % 47 Issue 2/October/217

48 Jul-17 Aug-17 Sept-17 97,126,559, ,121, ,889, ,76,452, ,743, ,47, , ,636, , ,77, ,476,863, ,66, ,476,731,678 6, , ,192 89,988 97,71. 89,911 96, ,292,466,995, ,597,356,455, NSE ALL-SHARE INDEX NSE All Share Index , % 32% % 5.26% 211,819, , , ,25,732,354. 4,25,76, ,597 64, , ,598,252,99, NSE All Share Index 35, % % 48 Issue 2/October/217

49 49 Issue 2October/217 April-17 Jun-17 May-17 31,2, ,319, ,162, ,31, ,13, ,145,54 41,79, ,179. 1,71. 9, ,647, , ,319,64 26,279, ,3. 9,815. 9, ,721, ,478, ,65,641 9,975,424. 9,217. 9,437. 9, ,59,467, BRVM % % 12,262,73, BRVM BRVM % % -.41% % 11,422,765,

50 July-17 Aug-17 39,848, ,319, ,383, ,647, ,464, ,965. 4,694,963 26,319,64 3,829, ,279, ,19. 39,3. 7,356. 9,815. 7,314. 9, ,262,73, BRVM-1 BRVM % % Issue 2/October/217 5

51 51 Issue 2/October/217 April-17 Jun-17 May-17 17,977, ,422,1.4 2,341, , ,243, , ,46,131 11,921 1,343,71 5, , ,793, ,452, ,436,361 58,492 1,8,15 8,297, , ,719, ,174, ,269,97 28,384 12,341,523 9, ,199, % ,59,142, % 1,5,271,

52 Jul-17 Aug-17 4,591, ,422, , , ,354, ,793, , ,452, ,737,76 9,436,361 56,56 58,492 2,636,85 1,8,15 44,8 8,297, ,23,992, ,59,142, Issue 2/October/217 52

53 April-17 May ,72, ,93, ,51, ,497, ,223, ,318, ,584, ,3, ,21, ,612, ,637,62. 68,974, ,319,64 26,279, ,3.. 82,558, ,911,542. 7,646, , , , , , , ,789,124, NSE2 Share Index 3, ,884,281, NSE2 Share Index 3, ,592,848, NSE2 Share Index 3, Issue 2/October/217

54 Jul-17 Aug-17 Sept ,858, ,319, ,539, ,789, ,66, ,63, ,749, ,313, _ 858,36, ,46, ,363, ,36,16. 64,172, ,324,445 58,234, ,58. 26,45. 1,13. 32, , ,68,89, ,64,292, NSE2 Share Index NSE2 Share Index 3,7. 4, ,77, , , , ,28,644, NSE2 Share Index 3, Issue 2/October/217 54

55 SWAZILAND STOCK EXCHANGE Apr-17 May-17 June-17 2, , $. 2, , $. 7,656 7,656 35,324,445 12,334 12, ,251, All Share Index % 255,127, All Share Index % 255,127, All Share Index % 55 Issue 2/October/217

56 SWAZILAND STOCK EXCHANGE Jul-17 Aug-17 Sept-17 51, ,131, , , ,128, , , ,2 23,2 7,476,557 7,476, ,535 74, ,34, All Share Index % 262,845, All Share Index % All Share Index % Issue 2/October/217

57 DOUALA STOCK EXCHANGE April-17 May-17 Jun ,217 2,51,721 44,484 28,75 3,24 27,56 125,33 537,48 9, , ,773 2,291,77 11, , 1, ,924-2, , ,34,82 281,628,33 283,237, Issue 2/October/217

58 DOUALA STOCK EXCHANGE Jul-17 Aug-17 Sept-17 87,299 4,485,4 39,12 73,181 14,119-2,441 1,441 1, ,82,659 21,767 84,678 3,658,595 44, ,76 2, ,83,2 39, ,326, Issue 2/October/217 58

59 GHANA STOCK EXCHANGE Apr-17 May-17 Jun-17 4,6, ,6, ,867,94,59. 9,124,698 6,89, ,89, ,118,923, ,196,38 6,89, ,89, ,462,776, ,267,542 9,124,698 1,867,94,59. 14,38,825, ,196,38 2,118,923, ,699,881, ,267,542 1,462,776, ,637,144, Issue 2/October/217

60 GHANA STOCK EXCHANGE Jul-17 Aug-17 5,521, ,988,46.2 5,521, ,988,46.2 3,5,951,273. 7,91,264 7,91,264 3,5,951,273. 5,28,535, ,212, ,212,814. 5,28,535, ,91,51, ,194,329, Issue 2/October/217 6

61 61 Issue 2/October//217 Apr-17 Jun-17 May , ,559, ,235, ,893, , ,95, ,69,242. N/A 625, , N/A 161,848 3, N/A N/A 3,394,357, RSI % % 1,576,28 15, N/A N/A 3,369,344, RSI % % N/A N/A 33,74,468, N/A RSI % %

62 Jul-17 Aug ,283, N/A , ,92.38 N/A 283,473 4, N/A N/A N/A N/A RSI ,31,847, RSI % Issue 2/October/217 62

63 63 Issue 2/October/217

64 Jul-17 Aug-17 53,76, ,228, ,968, ,791, ,778,82,76 88,982,76 16,689,1, ,88,996, , DSE ASI: 2, % 14,199, ,29, ,481,622,153 79,122,153 37,42,5, ,28,148, , DSE ASI: 2, % Issue 2/October/217 64

65 JOHANNESBURG STOCK EXCHANGE Apr-17 May-17 Jun-17 29,283,45, ,88,89,55 36,24,245,686 26,973,751,8 32,748,578,74. 4,75,654, ,119,92,31 195,978,664, ,469,852,629 43,189,391,27 5,39,414,471 5,362,528,33 27,886,141 5,477,452 5,2,455 29, ,164 1,51,844,252, All Share 53, % % 44,81,647,462 6,564,235,59 6,515,517,6 48,718,584 6,52,272 5,733,237 35, ,621 1,71,646,211, All Share 53, % % 83,28,738,191 7,881,774,682 7,799,326,251 82,448,431 6,97,527 6,545,81 38, ,545 1,42,286,526, All Share 51, % % 65 Issue 2/October//217

66 JOHANNESBURG STOCK EXCHANGE Issue 2/October//217 66

67 STOCK EXCHANGE OF MAURITIUS Jul-17 Aug-17 Sept-17 51,284,521 52,494,34 43,716,11 5,475,757 81,226 7,538 72,88,35 72,362, , ,368 6, ,942,235, ,41,29 2,947,14 136,947 96,975,582 96,648,87 314,341 13,154 7,22 7, ,569,88, ,119,433 9,457, ,529 66,143,917 65,754, ,72 8,5 6,674 6, ,16,33, SEMDEX SEMDEX SEMDEX 2, , , Issue 2/October/217

68 68 Issue 2/October//217 Apr-17 Jun-17 May-17 1,86, ,86, ,468, ,468, ,562,635 24,562,635 1,85, ,859,658 1,86, ,16,58 1,16, ,551, MALAWI STOCK EXCHANGE MASI MASI % % ,859, ,645, ,526, MASI %

69 69 Issue 2/October//217 Jul-17 Sept-17 Aug-17 2,424, ,187,731. 1,827,2.49 1,827, ,482,149 83,482,149 2,187,731. 2,424, ,82,88 23,82,88 MALAWI STOCK EXCHANGE ,27,288, MASI % ,516,315 43,516, ,22,38, MASI % ,354,678, MASI %

70 7 Issue 2/October/217 Jun-17 May-17 16,223, ,38, ,54,18.2 3,345, ,495, ,852,155 2,168,73 113,317 4,57,135 28,16 27,846 73,371, ,858, ,992, ,988,124 15,819, ,679 4,12,194 32,879 32, ,165,343, BOURSE DE TUNIS Tunindex % ,499,232, Tunindex %

71 BOURSE DE TUNIS Jul-17 Aug-17 Sept-17 51,838, ,284, ,46, ,892, ,471, ,474, ,121,725 12,26,442 83,8 2,11,483 29,661 29, ,769, ,473, ,4, ,653,563 8,32,281 19,85 1,61,432 24,874 24, ,226, , ,826,73. 15,62,538 12,97,361 14,78 2,635,397 22,963 22, ,626,519, Tunindex Tunindex Tunindex % Issue 2/October/217

72 TROP-X SECURITIES EXCHANGE Apr-17 May-17 Jun-17 24, ,15.4 5, , ,23 457, ,36 5, ,36 4, ,948, ,957, ,981, % 81,36 25, % Issue 2/ October/

73 TROP-X SECURITIES EXCHANGE Jul-17 Aug-17 Sept , , , ,364. 9, , ,364 25, ,68 2, ,392 2, ,533, ,47, ,26, SCR % 73 Issue 2/October/217

74 74 Issue2/October/217 Apr-17 Jun-17 May-17 3,642,511 2,257, ,67, ,361,675 74,56,951 1,714,23,35 667,332,35 89,323, ,94,23 1,343,99,86 6,814,96. 1,336,284, ,92,56, ,72,753 1,513,175,266 13,11,316. 1,5,163, LUSE STOCK EXCHANGE 97 6,328,, LASI % % ,448,, LASI % % 1,46,898, ,551,, LASI %

75 LUSE STOCK EXCHANGE Jul-17 Aug-17 1,689, ,427, ,19,28, ,213, ,439,553 1,646,997,588 15,866,268 1,631,131, ,722,, LASI % 18,846,797 1,53,295,847 13,359,687 1,516,936, ,61,, LASI % 75 Issue 2/October/217

76 NASD OTC SECURITIES EXCHANGE Apr-17 May-17 Jun ,299, ,6, ,553, ,16, ,139, ,35,511 9,51,878 6,524, ,79, ,926, ,165,473 16,888,323 3,277, , , ,21,922 26,999, , ,317,378, ,32,123, ,41,21, USI USI USI % N/A N/A 2% N/A N/A -2.81% N/A N/A Issue 2/October/217 76

77 77 Issue 2/October/217 NASD OTC SECURITIES EXCHANGE Jul , , , ,744,53 9,445, , Sept-17 Aug-17-1,361,86, USI 15.81% N/A N/A 3,958, , ,278, ,149,383 21,149,383 1,, ,331,393, USI % N/A N/A 1,382, ,344, , ,411, ,297, , ,289,381, USI % N/A N/A

78